Former Florida Attorney Pleads Guilty To Racketeering Relating To His Tallahassee Law Firm And Investment Companies

Former Florida attorney pleads guilty to racketeering charges involving his law firm and investment companies in Tallahassee. Learn more here.

In a significant legal development, a former Florida attorney has pled guilty to racketeering charges connected to the operation of his law firm and investment companies in Tallahassee. Phillip Timothy Howard, 62, admitted to engaging in a pattern of racketeering activity, including wire fraud and money laundering. Howard’s illegal activities revolved around representing former NFL players in a class-action lawsuit, where he fraudulently convinced his clients to invest their retirement funds with his investment companies. However, Howard failed to disclose crucial information and misrepresented the true nature of the investments, resulting in fraudulent gains of over $4 million. This guilty plea represents an important milestone in the joint investigation conducted by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations, the U.S. Securities and Exchange Commission, and the Financial Industry Regulatory Authority. Howard now faces the possibility of up to 20 years in prison and a maximum of 3 years of supervised release.

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Former Florida Attorney Pleads Guilty To Racketeering

Phillip Timothy Howard pleads guilty to racketeering (RICO)

In a significant development, former Florida attorney Phillip Timothy Howard has pleaded guilty to racketeering (Racketeer Influenced and Corrupt Organizations Act, RICO) charges. This plea comes after a joint investigation conducted by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service’s Criminal Investigations (IRS-CI). Howard’s guilty plea sheds light on the illicit activities conducted by him and his associates within his law firm and various investment companies in Tallahassee.

Associates and investment companies involved in the racketeering activity

Documents associated with the case reveal that between December 2015 and January 2018, Howard, along with others, was associated with an enterprise that comprised his law firm, Howard & Associates, P.A., and several Tallahassee investment companies. The investment companies involved in the racketeering activity are Cambridge Capital Group, LLC; Cambridge Capital Wealth Advisors, LLC; Cambridge Capital Advisors, LLC; Cambridge Capital Funding, Inc.; Cambridge Capital Group Equity Option Opportunities, L.P.; and Cambridge Capital Partners, L.P.

Pattern of racketeering activity

During the specified period, Howard and others knowingly, willfully, and unlawfully conducted the affairs of the enterprise through a pattern of racketeering activity. Wire fraud and money laundering were identified as the primary forms of racketeering activity.

Wire fraud and money laundering as forms of racketeering activity

Howard engaged in wire fraud through multiple acts related to his representation of former NFL players in a class-action lawsuit. These players were eligible for settlement payouts from the NFL, and Howard fraudulently enticed them to invest their retirement funds with his investment companies. However, Howard failed to disclose crucial information regarding the enterprise’s structure, conflicts of interest, and the criminal background of those associated with or employed by it. Additionally, Howard provided inaccurate investment statements to the investors, misleading them about the true nature of the investment funds and the actual investments made. This fraudulent activity resulted in the acquisition of over $4 million.

Fraudulent actions related to representation of former NFL players

The case highlighted Howard’s fraudulent representation of former NFL players in the class-action lawsuit. He misrepresented the structure of the enterprise and the conflicts of interest within it. Furthermore, Howard failed to disclose the criminal background of individuals associated with the enterprise, deceiving his clients into investing their retirement funds.

Misrepresentation of the structure and conflicts of interest within the enterprise

Howard intentionally misrepresented the structure of the enterprise and the conflicts of interest that existed within it. This misrepresentation allowed him to exploit his clients and their investments for personal gain.

Commingling of investment funds with law firm funds

Another fraudulent practice undertaken by Howard was the commingling of the investment funds with the funds of his law firm. This deliberate act obscured the true nature of the investments and allowed Howard to divert funds for personal use.

Inaccurate investment statements provided to investors

To further perpetuate the fraud, Howard issued inaccurate investment statements to the investors. These statements misrepresented the allocation of funds and falsely indicated the existence of dedicated investment funds. In reality, the bank accounts associated with the enterprise contained little to no money.

Fraudulent acquisition of over $4 million

As a result of Howard’s fraudulent activities, over $4 million was obtained unlawfully. This significant sum further highlights the magnitude of the racketeering operation.

Sentencing hearing and potential penalties

A sentencing hearing for Phillip Timothy Howard is scheduled to take place on November 6, 2023, at the United States Courthouse in Tallahassee. If convicted, Howard faces a maximum penalty of 20 years in prison for racketeering, along with a maximum term of 3 years of supervised release.

Investigation and Prosecution

Joint investigation by the FBI and IRS-CI

The investigation into the racketeering activities of Phillip Timothy Howard was a collaborative effort between the Federal Bureau of Investigation (FBI) and the Internal Revenue Service’s Criminal Investigations (IRS-CI). This joint investigation aimed to uncover the extent of the illegal activities conducted by Howard and his associates.

Assistance from SEC and FINRA

The U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) provided crucial assistance during the investigation. Their expertise in securities and investment fraud proved invaluable in unraveling the complex web of illicit activities.

Prosecution by Assistant U.S. Attorneys Justin M. Keen and David P. Byron

The prosecution of the case against Phillip Timothy Howard is being led by Assistant U.S. Attorneys Justin M. Keen and David P. Byron. Their expertise in prosecuting criminal cases ensures that justice is served and the guilty parties are held accountable for their actions.

Overview of the Case

Description of Howard’s law firm and investment companies

Phillip Timothy Howard operated his law firm, Howard & Associates, P.A., in Tallahassee, Florida. This firm was involved in the racketeering activities carried out through a series of investment companies. The investment companies associated with the enterprise were Cambridge Capital Group, LLC; Cambridge Capital Wealth Advisors, LLC; Cambridge Capital Advisors, LLC; Cambridge Capital Funding, Inc.; Cambridge Capital Group Equity Option Opportunities, L.P.; and Cambridge Capital Partners, L.P.

Timeline of the racketeering activity

The racketeering activity carried out by Howard and his associates spanned from December 2015 to January 2018. During this timeframe, Howard engaged in fraudulent practices, including wire fraud and money laundering, to exploit former NFL players and their retirement funds.

Details of the wire fraud and money laundering actions

Wire fraud was a central component of Howard’s racketeering activity. He committed multiple acts of wire fraud in relation to his representation of former NFL players in a class-action lawsuit. By enticing these players to invest their retirement funds with his investment companies, Howard gained access to substantial amounts of money. Additionally, money laundering was employed to conceal the illicit origins of the funds obtained through the fraudulent activities.

Howard’s fraudulent representation of former NFL players

One of the key aspects of Howard’s racketeering operation was his representation of former NFL players in a class-action lawsuit. Through deceptive practices and misrepresentation, Howard convinced these individuals to invest their retirement funds with his investment companies, ultimately defrauding them of their money.

Misrepresentation of investment funds and conflicts of interest

Howard deliberately misled his clients regarding the structure of the enterprise and the conflicts of interest within it. By withholding crucial information, he manipulated his clients and their investments for personal gain.

Commingling of funds and personal enrichment

Another fraudulent practice employed by Howard was the commingling of investment funds with the funds of his law firm. This act allowed him to divert funds for personal use, enriching himself at the expense of his clients.

Sentencing and Penalties

Scheduled sentencing hearing

The sentencing hearing for Phillip Timothy Howard is scheduled to take place on November 6, 2023, at the United States Courthouse in Tallahassee. This hearing will provide an opportunity for the court to consider the evidence presented and determine an appropriate sentence.

Maximum penalties for racketeering

If convicted of racketeering, Howard faces a maximum penalty of 20 years in prison. The severity of this penalty reflects the serious nature of the crime and serves as a deterrent for others who might consider engaging in similar illicit activities.

Potential prison sentence and supervised release

In addition to the maximum prison sentence of 20 years, Howard could also face a term of supervised release. This period of supervision following the completion of the prison sentence is designed to ensure that individuals who have committed crimes are reintegrated into society responsibly and monitored for any potential recidivism. The maximum term of supervised release for Howard is 3 years.

Joint Investigation by the FBI and IRS-CI

Collaboration between the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations

The joint investigation conducted by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service’s Criminal Investigations (IRS-CI) was instrumental in uncovering the racketeering activities of Phillip Timothy Howard. The combined expertise and resources of these agencies allowed for a thorough examination of the case.

Assistance from the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA)

To supplement their investigation, the FBI and IRS-CI sought assistance from the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). The expertise of these organizations in matters of securities and investment fraud proved invaluable in building a comprehensive case against Howard and his associates.

Details of the Racketeering Activity

Wire fraud and money laundering as forms of racketeering activity

Wire fraud and money laundering were identified as the primary forms of racketeering activity carried out by Howard and his associates. These illegal activities were central to the operation of the enterprise and allowed for the acquisition of illicit funds.

Specific acts of wire fraud committed by Howard

Howard engaged in wire fraud through various acts related to his representation of former NFL players in a class-action lawsuit. These acts involved defrauding his clients and enticing them to invest their retirement funds with his investment companies.

Fraudulent enticement of former NFL players to invest retirement funds

Central to the wire fraud committed by Howard was his fraudulent enticement of former NFL players to invest their retirement funds with his investment companies. By providing false and misleading information, Howard gained their trust and access to their funds.

Failure to disclose conflicts of interest and criminal backgrounds

One of the key aspects of Howard’s wire fraud scheme was the failure to disclose crucial information to his clients. He deliberately withheld information regarding conflicts of interest within the enterprise and the criminal backgrounds of individuals associated with or employed by it.

Inaccurate investment statements provided to investors

As part of his fraudulent activities, Howard issued investment statements to the investors. These statements were inaccurate and misrepresented the true nature of the investment funds and the actual investments made, further deceiving the investors.

Use of investment funds to operate law firm and for personal gain

Howard’s fraudulent activities extended beyond the investment realm. He diverted funds from the investment companies to operate his law firm and enriched himself by using the funds for personal expenses such as mortgage payments.

Misrepresentation and Fraudulent Actions Towards Former NFL Players

Howard’s representation of former NFL players in a class-action lawsuit

Howard’s involvement with former NFL players stemmed from his representation in a class-action lawsuit. It is within this context that he perpetrated his fraudulent activities, ultimately defrauding the players of their retirement funds.

Misrepresentation of the structure and conflicts of interest within the enterprise

One of the key elements of Howard’s fraudulent activities was the deliberate misrepresentation of the structure of the enterprise and the conflicts of interest present within it. This misrepresentation allowed him to manipulate his clients into investing their retirement funds with his investment companies.

Fraudulent enticement of clients to invest retirement funds with his investment companies

Through deceptive practices, Howard fraudulently enticed his clients, including former NFL players, to invest their retirement funds with his investment companies. This fraudulent enticement enabled him to gain access to their funds for personal gain.

Lack of disclosure regarding the true nature of investment funds and actual investments made

Howard deliberately withheld crucial information from his clients regarding the true nature of the investment funds and the actual investments made. This lack of disclosure allowed him to mislead his clients and exploit their investments.

Failure to inform clients of the commingling of funds and lack of return on investments

Another aspect of Howard’s fraudulent activities was the failure to inform his clients about the commingling of funds and the lack of return on their investments. This lack of disclosure further deceived the clients and allowed Howard to continue his illicit operations.

Issuance of inaccurate investment statements

To maintain the facade of legitimacy, Howard issued investment statements to his clients. These statements were inaccurate and misrepresented the allocation of funds and the true financial position of the enterprise.

Collaboration with SEC and FINRA

Assistance from the U.S. Securities and Exchange Commission (SEC)

The U.S. Securities and Exchange Commission (SEC) provided valuable assistance during the investigation of Phillip Timothy Howard’s racketeering activities. Their expertise in matters of securities and investment fraud was instrumental in uncovering the complexities of the case.

Involvement of the Financial Industry Regulatory Authority (FINRA)

The Financial Industry Regulatory Authority (FINRA) played a significant role in the investigation of Howard and his associates. FINRA’s expertise in regulating investment firms and detecting fraudulent activities allowed for a thorough examination of the investment companies involved in the racketeering operation.

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Description of Howard’s Law Firm and Investment Companies

Name and location of Tallahassee law firm (Howard & Associates, P.A.)

Phillip Timothy Howard operated his law firm, Howard & Associates, P.A., in Tallahassee, Florida. This law firm served as the center of operations for the illicit activities carried out through the associated investment companies.

List of Tallahassee investment companies involved in the enterprise

The enterprise associated with Phillip Timothy Howard’s racketeering activities consisted of several Tallahassee investment companies. These companies include Cambridge Capital Group, LLC; Cambridge Capital Wealth Advisors, LLC; Cambridge Capital Advisors, LLC; Cambridge Capital Funding, Inc.; Cambridge Capital Group Equity Option Opportunities, L.P.; and Cambridge Capital Partners, L.P.

Relationship between the law firm and investment companies

Howard’s law firm, Howard & Associates, P.A., played an integral role in the racketeering activities conducted through the investment companies. The commingling of funds and the use of investment funds to operate the law firm were key elements of the illicit operation.

Timeline of the Racketeering Activity

Timeframe during which the racketeering activity took place

The racketeering activity carried out by Phillip Timothy Howard and his associates occurred between December 2015 and January 2018. This timeframe provides an understanding of the duration of their illegal activities.

Beginning and end dates of the enterprise’s operation

The enterprise, consisting of Howard’s law firm and the associated investment companies, began its operation in December 2015 and officially ended in January 2018. Within this timeframe, Howard and his associates engaged in various fraudulent practices to exploit their clients and amass illicit funds.

Key events and significant actions throughout the timeline

The timeline of the racketeering activity is marked by various key events and significant actions. These include the fraudulent enticement of former NFL players, the issuance of inaccurate investment statements, and the commingling of funds for personal enrichment. Understanding these events is crucial to comprehending the extent of Howard’s illicit operations.

Overall, the guilty plea of former Florida attorney Phillip Timothy Howard in a racketeering case is a substantial development in the fight against financial crime. This comprehensive article provides an overview of the case, highlighting the key aspects of the racketeering activity, the joint investigation by law enforcement agencies, and the potential penalties Howard may face. By shedding light on this case, it serves as a reminder of the importance of holding individuals accountable for their illegal actions and protecting the interests of the victims.

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Source: https://www.justice.gov/usao-ndfl/pr/former-florida-attorney-pleads-guilty-racketeering-relating-operation-his-tallahassee